The price of molybdenum, often referred to as the "industrial vitamin," has surged, with a single day's increase reaching 1500 yuan per tonne. This essential metal, crucial for sectors like wind power, photovoltaics, and semiconductors, has seen its value climb to a near three-year high.
Molybdenum is an indispensable raw material in steel metallurgy, high-end equipment, and new energy industries. China holds the world's largest reserves of molybdenum ore. The molybdenum market experienced a broad-based rally in the first half of 2026, with prices for core products like molybdenum concentrate and ferromolybdenum rising by nearly 30%, reaching their highest levels in approximately three years. The price per tonne-degree for molybdenum concentrate surpassed 5,300 yuan, while ferromolybdenum saw a daily increase of 1,500 yuan per tonne.
How Dramatic is the Price Surge?
Ferromolybdenum, a key finished product from molybdenum concentrate smelting and a vital alloy additive for special steels, exemplifies the trend. According to Ren Linhai, Manager of the China Smelting Branch of China Molybdenum Co., Ltd., the price per tonne of ferromolybdenum was 332,000 yuan on July 14th, up from 330,500 yuan the previous day—a one-day gain of 1,500 yuan, indicating a sustained upward trajectory over the longer term.
Rising Concentrate Prices Push Companies to Maximize Recovery Rates
With ferromolybdenum prices persistently high, questions arise about whether upstream mining operations can increase extraction and supply. At a large open-pit molybdenum mine in Luoyang, Henan, operations are running at full capacity around the clock. Raw ore undergoes multiple processes—crushing, grinding, flotation, and concentration—to produce high-purity molybdenum concentrate, the core upstream raw material. Company representatives indicate that current production capacity is near its limit, with little room for significant short-term output increases.
This year, molybdenum concentrate prices have continued to rise, now exceeding 5,300 yuan per tonne-degree. For example, a tonne of concentrate with 45% molybdenum content costs nearly 240,000 yuan. Faced with this hot market, companies operating at full capacity are now focusing investments on improving metal recovery rates. Tan Xiaole, Deputy Manager of the No. 3 Concentrator Branch of China Molybdenum Co., Ltd. in China, stated that recovery rates have increased from a previous 90% to over 92%.
Key Data Reveals Tight Supply as Root Cause of Price Hikes
Latest market data from Shanghai Ganglian on July 17th shows molybdenum concentrate quoted at 5,335 yuan per tonne-degree, a cumulative increase of nearly 36% in H1; ferromolybdenum was quoted at 333,000 yuan per tonne, up nearly 28% in H1. Both products have reached their highest points in nearly three years. Industry experts attribute the price surge primarily to structural supply tightness.
Shi Jia, Special Alloy Manager at Shanghai Ganglian's Ferroalloy Division, revealed that domestic molybdenum concentrate production in H1 2026 was approximately 160,000 tonnes, a year-on-year increase of only 2.8%. This supply growth rate is far below the expansion speed of downstream demand. Furthermore, there is minimal room for further capacity release in China's main molybdenum-producing regions. Imported raw materials provide little relief; from January to May, imports of effective, high-grade molybdenum concentrate were less than 8,000 tonnes, accounting for only 4.4% of total domestic supply during that period, making significant short-term supply increases unlikely.
Who are the Major Molybdenum Consumers?
In addition to tight upstream supply, steadily growing downstream demand is another key factor supporting high molybdenum prices. Currently, over 70% of domestic molybdenum demand originates from the special steel sector. Jiang Qiao, General Manager of the Sales Headquarters at CITIC Pacific Special Steel Group, explained that ferromolybdenum enhances strength, meets toughness requirements, offers good plasticity, and provides excellent high-temperature and corrosion resistance, all of which significantly benefit steel products.
This special steel company's molybdenum-containing steel accounts for 30% of its total output, with annual ferromolybdenum procurement around 25,000 tonnes. Sustained raw material price increases directly raise production costs, prompting the company to urgently adjust its procurement model to hedge risks. According to Huang Jianghai, General Manager of the Procurement Center at CITIC Pacific Special Steel Group, the previous procurement mix was 60% based on long-term agreement prices plus about 40% spot purchases. Recently, in response to high ferromolybdenum prices, they have shifted to prioritizing long-term agreement purchases and reduced the proportion of spot procurement.
Data shows domestic steel mills' total ferromolybdenum bidding volume in H1 2026 reached 82,000 tonnes, a 6% year-on-year increase. As China's new energy industry accelerates its iteration and high-end equipment manufacturing continues to upgrade, demand for molybdenum-containing special steels keeps expanding. Jiang Qiao noted that demand for molybdenum steel is growing rapidly in areas such as aerospace, deep-sea and deep-earth exploration, energy storage power stations, new energy, hydrogen, wind power, and nuclear power development, with an annual growth rate of approximately 10%.
New Growth Frontiers: Photovoltaics and Semiconductors Open Long-Term Space
Beyond the traditional special steel base, emerging sectors like new displays, perovskite photovoltaics, and semiconductors are reshaping molybdenum demand dynamics, driving the market's upgrade from an industrial necessity towards high-end new materials.
At a molybdenum product deep-processing enterprise in Luoyang, Henan, the company is ramping up production of molybdenum tube targets, primarily used for display panel coating, with a noticeable recent increase in orders. Zhang Lingjie, Chairman of Luoyang Kewei Tungsten & Molybdenum Co., Ltd., stated that orders have risen over the past two months, increasing monthly molybdenum product output from around 50 tonnes to over 70 tonnes.
The company recently secured a new verification order for perovskite photovoltaics. The executive pointed out that molybdenum tube targets offer comprehensive properties like high melting point, low resistivity, and good corrosion resistance, making them core materials for new photovoltaic cells with enormous industry potential.
The semiconductor memory industry is undergoing a material transition. Several global leading memory chip manufacturers are adopting molybdenum to replace traditional tungsten in next-generation ultra-high-layer chips. Industry insiders note that molybdenum's lower resistance eliminates the need for a barrier layer, allowing for direct filling, making it an inevitable technical choice for advanced memory process iteration.
Shi Jia from Shanghai Ganglian explained that while the current volume from the memory chip sector is relatively small, contributing more to valuation and sentiment premiums, its long-term growth potential is significant. Within 3-5 years, it is expected to transition from a thematic concept to substantive demand growth. Overall, global energy transition, high-end manufacturing, and AI computing power industry upgrades present long-term structural tailwinds. Molybdenum is poised to become a key strategic new material supporting new energy, semiconductors, and national defense industries.
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